System and Method for Modifying Trading Strategies Based on Message Usage

1. A computer-based method for managing transaction messages in an electronic trading environment, comprising: defining at a computing device a client entity that utilizes an automatic trading strategy comprising a plurality of trading profiles, each trading profile configured to generate transaction messages based on market data received from an electronic exchange, and wherein the client entity sends the transaction messages to the electronic exchange; defining at the computing device a message usage threshold, wherein the message usage threshold defines a maximum number of transaction messages to be sent to the electronic exchange from the client entity, and wherein the message usage threshold is based on a number of fills associated with the transaction messages being sent from the client entity; selecting by the computing device a first trading profile of the plurality of trading profiles to generate and send a first plurality of transaction messages to the electronic exchange; detecting by the computing device that the message usage threshold is to be exceeded; and subsequently, automatically selecting by the computing device a second trading profile of the plurality of trading profiles, wherein the second trading profile is selected to generate a larger number of fills at the electronic exchange and to prevent exceeding the message usage threshold by the client entity.

2. The method of claim 1 , wherein the client entity comprises a single user that is using the trading strategy to trade a tradeable object at the electronic exchange.

3. The method of claim 1 , wherein the client entity comprises a plurality of users that is using the trading strategy to trade a tradeable object at the electronic exchange.

4. The method of claim 1 , further comprising the step of alerting the client entity when the message usage threshold is to be exceeded.

5. The method of claim 1 , wherein the message usage threshold is determined based on an exchange policy.

6. The method of claim 1 , further comprising the step of receiving a new message usage threshold, wherein the new message usage threshold is used to determine a new maximum number of messages that can be sent to the electronic exchange from the client entity without exceeding the new message usage threshold.

7. The method of claim 1 , wherein the automatic trading strategy uses a computer algorithm to generate and send the transaction messages to the electronic exchange.

8. The method of claim 1 , further comprising: dynamically determining the message usage threshold that applies to the client entity, wherein the message usage threshold is determined based on a number of the transaction messages being sent from the client entity.

9. The method of claim 1 , further comprising: determining the message usage threshold that applies to the client entity, wherein determining the message usage threshold comprises determining a fill percentage for the client entity.

10. The method of claim 9 , wherein the fill percentage is determined based on a the number of fills and the transaction messages being sent from the client entity.

11. A computer readable medium having computer-executable instructions for performing a method comprising: defining at a computing device a client entity that utilizes an automatic trading strategy comprising a plurality of trading profiles, each trading profile configured to generate transaction messages based on market data received from an electronic exchange, and wherein the client entity sends the transaction messages to the electronic exchange; defining at the computing device a message usage threshold, wherein the message usage threshold defines a maximum number of transaction messages to be sent to the electronic exchange from the client entity, and wherein the message usage threshold is based on a number of fills associated with the transaction messages being sent from the client entity; selecting by the computing device a first trading profile of the plurality of trading profiles to generate and send a first plurality of transaction messages to the electronic exchange; detecting by the computing device that the message usage threshold is to be exceeded; and subsequently, automatically selecting by the computing device a second trading profile of the plurality of trading profiles, wherein the second trading profile is selected to generate a larger number of fills at the electronic exchange and to prevent exceeding the message usage threshold by the client entity.

12. The computer readable medium of claim 11 , wherein the client entity comprises a single user that is using the trading strategy to trade a tradeable object at the electronic exchange.

13. The computer readable medium of claim 11 , wherein the client entity comprises a plurality of users that is using the trading strategy to trade a tradeable object at the electronic exchange.

14. The computer readable medium of claim 11 , further comprising the step of alerting the client entity when the message usage threshold is to be exceeded.

15. The computer readable medium of claim 11 , wherein the message usage threshold is determined based on an exchange policy.

16. The computer readable medium of claim 11 , further comprising the step of receiving a new message usage threshold, wherein the new message usage threshold is used to determine a new maximum number of messages that can be sent to the electronic exchange from the client entity without exceeding the new message usage threshold.

17. The computer readable medium of claim 11 , wherein the trading strategy uses a computer algorithm to generate and send the transaction messages to the electronic exchange.

18. The computer readable medium of claim 11 , further comprising: determining the message usage threshold that applies to the client entity, wherein the message usage threshold is determined based on a number of the transaction messages being sent from the client entity.

19. The computer readable medium of claim 11 , further comprising: determining the message usage threshold that applies to the client entity, wherein determining the message usage threshold is based on a fill percentage for the client entity.

20. The computer readable medium of claim 19 , wherein the fill percentage is determined based on a the number of fills associated with the transaction messages being sent from the client entity.